Debt Settlement Offer Letter – Sample – Template

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Updated June 24, 2022

The Debt Settlement Offer Letter is a form that shows a debt is willing to be closed if the parties agree to new terms. Typically, this letter is from the debtor in order to offer a lump sum payment if the creditor is willing to release the burden of the full amount. After the letter is accepted, the parties will enter a debt settlement agreement unless a simple receipt is enough to satisfy the debtor.




John Doe
123 Apple Way
Appleville, CA

Date December 15, 2017

RE: Collections Letter that was received on December 1, 2017

Dear Jefferson’s Collections Agency,

This letter does not grant my acceptance of money owed, although, it provides an offer at which I would be willing to pay in order to remove this claim. The amount I am willing to offer is Six-hundred eighty Dollars ($680.00).

If you should accept my offer, a payment would be made immediately. Feel free to contact me via the provided contact details:

Cell: (813) 732-4741


John Doe


How to Write

1 – Review The Sample Then Download A Copy

The letter template displayed on this page can be downloaded as an Adobe PDF, Microsoft Word (.docx), or Open Document Text (.odt). Three labeled buttons have been supplied to this page, so you may access a copy at your discretion.

2 – The Header Will Require Sender’s Address Information

The first task will be to address the three blank lines on the right half of the page just beneath the Title. The Sender of this letter should fill in his or her Full Name on the first line, then use the next two lines to record his or her Mailing Address.

The next empty space is reserved for the Date of this Letter. Make sure to enter the current date in the traditional Month Name, Two-Digit Day, and Four-Digit Calendar Year.

3 – Supplement The Language Of This Letter

Most of the language in this letter has been appropriately structured to offer the Debtor a Settlement, however, the amount of money the Sender is offering must be recorded so the Sender’s intentions can be settled. Write in how much money the Sender is willing to pay the Debtor on the blank line after the words “…I Am Willing To Offer Is” and use the blank line in the parentheses to record the Dollar Amount the Sender is willing to pay as a number.

4 – Provide Reliable Contact Information

Locate the set of blank lines beneath the body of this letter. The Sender of this letter should use these lines to document his or her current “E-Mail” Address on the first one.

The next three blank lines request the Sender’s Current “Cell” Phone, “Home Phone,” and “Work Phone” Number

5 – Close This Letter

The Sender must then sign his or her Name on the blank line following the word “Sincerely”